Indian Markets Steady Ahead of Key US Data
India's stock market is set for a flat opening as investors remain cautious ahead of important U.S. economic data that may affect Federal Reserve interest rates. With six consecutive days of gains, the Nifty and Sensex are just below their record highs, reflecting a positive sentiment among investors.
The Gift Nifty futures indicated a flat opening at 25,990.5 points, close to Monday's closing level of 26,013.45. Over the past few sessions, both indices have risen by roughly 2%, bolstered by a strong earnings season and significant domestic inflows. The resolution of the U.S. government shutdown has also contributed to this bullish trend.
Despite the optimistic outlook, analysts suggest that market participants may take a pause due to global uncertainties, particularly regarding U.S. interest rates. Wall Street closed lower, and Asian markets fell by about 1%, reflecting a cautious global sentiment.
This week is crucial as it includes the delayed September jobs report, which is expected to provide clarity on the potential for a rate cut by the Federal Reserve. The probability of a 25-basis-point rate cut on December 10 has decreased, raising concerns that higher U.S. rates could make investments in emerging markets like India less appealing for foreign investors.
On the domestic front, Indian institutional investors have continued their buying spree, being net buyers for the 14th consecutive session with inflows of 14.66 billion rupees. Interestingly, foreign institutional investors have also returned to the buying side after a five-session selling streak, purchasing 4.42 billion rupees of stocks.
Some stocks to watch include Blackstone, which plans to reduce its stake in IT firm Mphasis, and Elevation Capital, which is set to sell a significant portion of its Paytm shares. Additionally, AstraZeneca Pharma has partnered with Sun Pharma for the distribution of a new drug in India, further showcasing active corporate movements in the market.
Overall, while the Indian market remains resilient, investors are advised to stay vigilant regarding upcoming U.S. data releases that could sway market dynamics in the near future.
